2 Star Stocks In Fitness Sector - Peloton

2- Peloton

Peloton may have a lower gross margin (39.9% in the latest quarter) than Lululemon, but it more than compensates with its growth potential. The company experienced its first billion-dollar quarter by increasing revenue by 128 percent in the second quarter of 2021. Peloton has increased the number of valuable customers who also purchased equipment parts and paid a monthly fee of $ 39 to 1.67 million. There is no doubt that the Peloton benefited greatly from the epidemic, but the business continued to take steps accordingly before 2020. Consumers' tendency to do sports at home does not seem to decrease in the future. In addition, remote work is one of the major factors supporting the Peloton.

Compared to Lululemon, we think Peloton is surrounded by a tougher competitive moat.

Since creating a highly technical, innovative and integrated fitness infrastructure is much more difficult than creating a clothing business, and it is a structure that requires intense capital, the obstacles of Peloton are much higher compared to Lululemon. So Lululemon may have a stronger brand than Peloton in the future.

This is Peloton's first entry into the Asia-Pacific region!

Peloton is still working on resolving some of the supply issues it has had to deal with due to the growing demand for the product, but this incident doesn't worry us too much. The reason is the company's $ 100 million investment announcement dedicated to the Precor acquisition and management's shipping department. This means that the problems will be resolved in a short time. In addition, in the second half of 2021, the company will start operating in Australia and will have entered the Asia-Pacific region for the first time.   2 Star Stocks In Fitness Sector - Peloton Source: https://www.fool.com/ You may also be interested in:

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